The U.S. Department of Labor recently helped clarify the classifications between independent contractors and employees. Many employers and freelance contractors have wanted a better distinction between what constitutes the difference. This document is the final rule on that issue.
Some employers preferred classifying contractors as non-employees because it would save them a lot of money since they would not have to pay them overtime or give employee benefits. Calling them contractors also let them not have to withhold taxes and would enable them to let them go without any reason.
